ST. PETERSBURG, Fla. October 15, 2013 - US Natural Gas Corp (OTC Pink:UNGS), an energy exploration company with operations in the Appalachian Basin is pleased to inform shareholders that the Company's crude production from its portfolio of producing properties in Kentucky has reached its highest level since inception.
In two of its most recent announcements, the Company announced its strategy to expand crude production aggressively in Kentucky through acquisitions and a new opportunity afforded it through the Kentucky Division of Oil and Gas.
Today, the Company is announcing that it has acquired an additional leasehold in Allen County, Kentucky with four previously producing wells. The lease covers 171 acres with four wells drilled to an average total depth ("TD") of 512'. One of the four wells is fully equipped and has been placed into production. The Company will assess the production cut over the next 30 days to determine the proper timing for this well. Prior to the acquisition, this well had been producing 3 barrels of oil per day ("BOD") over the past six months. The Company will address the remaining three wells in a step wise manner beginning with assessment of the down-hole tubing and pumps. Once it is determined that the down-hole tubing is holding pressure, all above ground completion components will be installed on each individual well.
The Company projects that the acquisition of this leasehold will increase its daily crude production by 8-12 BOD once all four wells are placed into production and timed properly. The addition of these four wells brings the Company's projected daily crude production to its highest level since inception in 2008. With the current wells under operation, the addition of these four wells in Allen County and the previously announced five wells in Allen County, the Company's projected daily crude production has reached 35-40 BOD. In addition, the Company anticipates this daily projected production to further greatly increase as it acquires additional leases and wells in the State of Kentucky's Abandoned Well Program.
"We are very pleased to be able to report to shareholders further production increases," said Wayne Anderson, President of US Natural Gas Corp. " As crude hovers around the $100 mark, we will continue to earmark the majority of our capital expenditures toward increasing this revenue channel. The Company anticipates further announcements in the coming weeks pertaining to our Kentucky operation and production."
About US Natural Gas Corp
US Natural Gas Corp is an independent energy company principally engaged in the acquisition, exploration and development of mature long-lived oil and natural gas properties. The company's current operations are concentrated in the Appalachian Basin within the states of Kentucky and West Virginia with core assets consisting of 17,000 acres of mineral rights leases and interest in approximately 150 oil and gas wells. More information on US Natural Gas Corp can be found on the Company’s website at http://www.usnatgascorp.com/.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. Additional risks and uncertainties are set forth in the Company's Unaudited Annual Report for the year ended December 31, 2012, which can be found on the OTC Markets website, http://www.otcmarkets.com/.
US Natural Gas Corp